The consumer products industry is on the cusp of significant transformation as we enter 2025. A confluence of technological advancements, evolving consumer behaviors, and economic shifts is reshaping the landscape. Economic pressures, including inflation, have reduced disposable income for many, creating distinct customer segments with a growing emphasis on value.
At the same time, brands are scrambling to stand out and better understand their consumers by harnessing artificial intelligence (AI) to personalize marketing content and surface consumer insights. While some companies are far ahead—creating centralized AI insights centers of excellence, sharing data with retail partners, and even building e-commerce marketplaces—many brands are just scratching the surface of generative AI experimentation.
Next year, consumer products brands will have to strategically balance AI-driven transformation on both the back end and front end, reinventing their value propositions and revenue streams to engage with a diverse and constantly changing set of consumers.
In this report, Publicis Sapient consumer products industry experts break down the top five trends that will shape the consumer products industry a year from now, based on our market research and industry expertise.
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Generative AI Will Drive the Content Supply Chain
The use of generative AI in the content supply chain is accelerating, with the percentage of companies leveraging these technologies rising from 24.7 percent in 2022 to 25.5 percent last year.
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53 percent of consumer products executives in the C-suite view personalization or hyper-personalization as extremely (22 percent) or very (31 percent) important.
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Legacy IT and Traditional Operating Models Will Hinder AI
There is a clear divide in priorities between different executive levels. For example, 38 percent of the C-suite prioritize security and compliance, while only 10 percent of the V-suite do. Conversely, 25 percent of the V-suite prioritize machine learning and generative AI, compared to just 6 percent of the C-suite.
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Gen Z Values Will Guide Loyalty Strategies
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“Influencers are the modern-day word of mouth. Despite the rising anti-influencer sentiment, the recommendation aspect remains strong. People are more aware now, thinking, ‘These influencers are making a lot of money off of me.’ Authenticity is key.”
—Elizabeth Papasakelariou, Group Vice President and Managing Partner
Thirty-eight percent of Gen Z accept ads in exchange for free content, and 28 percent have purchased products as a result.
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Data Security Will Become a Top Priority
In 2025, ensuring data security will be paramount for consumer products firms. Companies across various industries frequently face penalties for consumer data privacy violations and significant data breaches. To navigate this landscape, firms must enhance transparency in data usage, invest in robust security measures, and organize their data infrastructures in preparation for upcoming and proposed AI and data privacy regulations.
While many brands focus on acquiring first-party consumer data and integrating proprietary data into AI models, it is equally crucial to prioritize updating data privacy and security safeguards. So far, many brands have experimented with generative AI without integrating potentially sensitive data—only 12 percent of consumer products leaders report doing so. However, as more organizations adopt open-source large language models like OpenAI and Google Gemini, those that can integrate their proprietary data at scale for specific use cases will generate more value over time. This approach, though riskier initially, will establish a foundation for future growth.
Despite these advancements, 50 percent of consumer products executives admit to lacking a comprehensive data strategy or having only partial integration across departments. Only 6 percent possess a mature, fully integrated enterprise data strategy that leverages advanced analytics, AI, and modern data collaboration tactics. This lack of maturity presents challenges for the C-suite, as 53 percent of C-suite industry leaders report that data quality, access, silos, and privacy concerns significantly impact their organization’s growth.
“The number one priority for consumer products firms next year is getting their data houses in order. It’s not the time to focus on gaining access to more data, but to better utilize and safeguard the data you already have,” says McPherson.
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Health and Wellness Becomes 1:1
The health and wellness trend has fundamentally reshaped consumer products, transforming consumer behavior and driving significant growth. In 2025, we’ll see this trend expand even more, especially as Gen Z gains purchasing power. The surge in demand for fitness and wellness products, exemplified by the success of brands like HOKA, has made health a core consumer value.
To capitalize on this opportunity, brands must integrate personalized wellness experiences across product categories. While many brands are doubling down on health and wellness-oriented products, the focus is shifting towards personalized health. For example, Unilever’s AI-powered personal experiences, like Dove’s virtual Scalp + Hair Therapist, are boosting purchases and consumer engagement. Consumers who discover new products on the BeautyHub PRO AI tool are 43 percent more likely to complete a purchase, according to a Unilever press release.
Consumers are also increasingly willing to invest in their overall health, with spending on wellness products and experiences rising. This is especially true for younger generations, who view health and beauty as interconnected aspects of personal care. The convergence of health and beauty is a key trend for 2025, driven by the influence of social media platforms like TikTok.
NielsenIQ reports that health and beauty products are projected to account for 81 percent of TikTok’s dollar sales. Gen Z consumers are seeking “clean,” cruelty-free items with natural scents, reflecting their overall preference for food that is low in sugar, high in protein, and free from artificial ingredients.
By strategically incorporating mental wellness products and services, and by emphasizing the intersection of health and beauty within owned brands, brands can effectively tap into this expanding market and drive sales growth. In order to keep up with the pace of consumer behavior, consumer products firms will need to incorporate AI-powered analytics into their strategy.
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Consumers who discover new products on the BeautyHub PRO AI tool are 43 percent more likely to complete a purchase, according to a Unilever press release.
Consumers are also increasingly willing to invest in their overall health, with spending on wellness products and experiences rising.